The Reserve Bank of India (RBI) has granted Bank of Baroda to resume on-boarding customers through its mobile application, Bob World. This decision comes as a relief to the public sector lender after facing restrictions imposed by the banking regulator last year.
The RBI had directed Bank of Baroda to suspend further customer onboarding onto Bob World on October 10, citing supervisory concerns. However, in a recent communication dated May 8, 2024, the RBI conveyed its decision to lift these restrictions with immediate effect, allowing the bank to digitally onboard customers in compliance with regulatory guidelines and laws.
In response to this positive development, Bank of Baroda expressed its commitment to ensuring adherence and compliance with regulatory standards. The bank stated that it will resume on-boarding new customers through the Bob World application, emphasizing its dedication to regulatory compliance.
The RBI’s decision to lift restrictions on Bank of Baroda follows the implementation of corrective measures by the bank, including the removal of its chief digital officer. These steps underscore the bank’s commitment to addressing the concerns raised by the banking regulator.
This development comes in the wake of the RBI’s recent actions against other financial institutions. Last week, the RBI lifted restrictions on Bajaj Finance’s sanctioning and disbursal of loans through certain channels. However, the banking regulator has also imposed sanctions on other entities such as Kotak Mahindra Bank, barring them from acquiring new customers via online and mobile banking channels due to serious deficiencies in information technology risk and information security governance.
The RBI’s ongoing efforts to enforce regulatory compliance and maintain the integrity of the banking sector have also led to actions against other institutions, including Paytm Payments Bank, IIFL Finance, and JM Financial Products over the past six months.
